What Happened?
Shares of memory chips maker Micron (NYSE:MU) jumped 4.5% in the morning session after a wave of positive developments, including a credit rating upgrade from Moody's and plans for a new $100 billion manufacturing plant in New York.
The ratings agency lifted Micron's senior unsecured debt rating, pointing to a strong competitive position and robust demand for memory products used in artificial intelligence systems. This demand was reflected in the company's financials, with DRAM revenues having jumped 69% year-over-year in the first quarter of fiscal 2026. Underscoring the tight supply, Micron's high-bandwidth memory (HBM) chips were reportedly sold out for 2026.
To meet future needs, the company announced it would break ground on the new semiconductor megafab in New York, which is set to become the largest in the U.S. This positive news flow led analysts at firms including Piper Sandler, UBS, and Bernstein to boost their price targets on the stock.
After the initial pop the shares cooled down to $339.33, up 3.7% from previous close.
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What Is The Market Telling Us
Micron’s shares are extremely volatile and have had 39 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock dropped 4.3% on the news that a broader market rotation out of the technology sector led to profit-taking following a recent rally.
The move was part of a wider trend that saw high-growth technology stocks fall, with the Nasdaq experiencing the sharpest decline among the major indices. Multiple reports indicated that traders were locking in profits, particularly from the artificial-intelligence trade, which had previously seen a strong run-up. This market action represented a shift in investor focus, as money moved out of tech.
Defense stocks emerged as the primary beneficiary of this capital shift, surging after President Trump proposed a massive $1.5 trillion defense budget for 2027. Major contractors rallied on the news, with Northrop Grumman jumping over 10% and Lockheed Martin gaining nearly 8%, providing a counterbalance to the tech slump that kept the S&P 500 flat. The rotation into heavy industry was further supported by a stabilization in energy markets, as crude prices rebounded.
Micron is up 7.6% since the beginning of the year, and at $339.33 per share, it is trading close to its 52-week high of $343.43 from January 2026. Investors who bought $1,000 worth of Micron’s shares 5 years ago would now be looking at an investment worth $4,313.
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